Digby Solomon on spending extra tax money

A scene from Aaron Sorkin’s “The West Wing” television show more than a decade ago still offers valuable insight into how liberals view income taxes and their obligations to the people who pay them.

Deputy Chief of Staff Josh Lyman is having a spirited discussion about how to spend tax surpluses when his down-to-earth assistant Donna Moss innocently asks why the government can’t simply return the excess to the taxpayers who paid it.

“We can spend the money better than they can,” her boss responds glibly.

Fast forward to the forthcoming discussion between our governor and state Republican legislative leaders over how to spend a projected $2.2 billion windfall in the coming years.

More than $1 billion of that represents extra state income taxes Virginia residents will pay as a result of President Trump’s income tax cuts.

The new tax law cut federal taxes and doubled the standard tax deduction.

But it capped deductions for both state income tax and property tax if one itemizes.

Many middle-class Virginians will save more in federal taxes by taking the standard deduction.

But Virginia doesn’t allow taxpayers to itemize deductions from state taxes if they opt not to do so on their federal tax return.

The result is many Virginians will end up paying more in state taxes.

The result is a projected $1.2 billion windfall over the next two years for the state.

Republican legislators want that money returned to you, the taxpayer.

They propose changing state tax laws to allow you to itemize costs like property taxes on your Virginia tax return while keeping the higher standard deduction on your federal taxes.

Democrats believe you are getting a windfall from lower federal taxes and thus should pay more in state taxes.

Gov. Ralph Northam and his Democratic allies want to keep your extra state taxes to fund a wish list of a dozen items, according to David Ress, the Daily Press’ expert numbers cruncher.

They include bonuses for state employees, a pay raise for teachers, earned income tax credits that will send checks to those who don’t pay taxes, doubling the state rainy day fund, economic development and environmental projects among others.

About half the expenses on the list would last only two years until they soak up the tax windfall.

The remainder, including pay raises, would be an ongoing claim on future state tax revenue.

The competing proposals will doubtless be the main attraction in the next legislative session, which begins just over a week from now.

It reminds one observation by Gideon Tucker, a Democrat who served as New York Secretary of State in the 19th century, who quipped “No man's life, liberty or property are safe while the legislature is in session.”

I still love the ending of that West Wing scene.

Donna is handed money and sent out to pick up lunch for the staff.

When she returns, her boss asks her for the change and she refuses, explaining “I can spend it better than you.”

Solomon, the former publisher of the Daily Press, writes a weekly column. Send email to solocolumn@gmail.com.